How to create a company in Panama?

The most popular type of company to create a company in Panama is the Sociedad Anónima (S.A.). This is because it has a flexible structure and can be incorporated quickly, but mainly because the anonymity of who is/are the shareholder (s) of the company is maintained.

The final beneficiary of the companies will only have to be privately registered with the Single Registry of Final Beneficiaries of the SSNF (Superintendency of Non-Financial Subjects).

Although the S.A. company is the most recurrent, there are also other structures such as The Limited Liability Company, or private interest foundations.

The main requirements for creating a joint-stock company are:

1. One (1) shareholder or final beneficiary (can be Panamanian or foreign).
2. Three (3) Panamanian or foreign directors.
3. Three (3) dignitaries who hold the positions of President, Secretary and Treasurer can be the same three (3) people who act as directors.
4. A legal commercial activity in the Republic of Panama.
5. Define whether the company will be perpetual or will be established for a certain period of time.
6. Define the share capital, which the minimum is USD 10,000.00, please take into account that this capital does not have to be paid to any institution or deposited in the bank.
7. A Resident Agent.
8. A registered tax address in Panama.
9. Two (2) subscribers.

You can find more details about the requirements here.

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The process to incorporate a company in Panama would be as follows:

1. Prepare the entity's social pact, which must include the information mentioned above.
2. Present the social pact for authentication at a notary public office in Panama.
3. Request the registration of the entity with the public registry of Panama.
4. Request the registration of the entity with the DGI (Directorate General of Revenue) to obtain the company's RUC.
5. Complete the final beneficiary's registration with the SSNF.

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The process to incorporate a company in Panama would take approximately ten (10) business days. The term of ten (10) business days is required to complete all of the steps mentioned above.

It should be noted that if you already have all the required information organized when contacting a lawyer to create the company, it would help to make the process faster.

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